For all of our human foibles, Americans are a very
generous people. Whenever we see or hear of someone in
need, it is our instinct to help. There are no better
examples of this American spirit than the recent
hurricanes that have hit our shores. But before you write
that check or charge your credit card for that donation, a
little homework and investigation can ensure your
generosity benefits a legitimate cause.
It would be advisable not to donate to
a charitable cause over the phone. Request that the caller
mail you literature about the charity so that you can read
and investigate the organization before giving money. Many
times these calls come from telemarketers who keep most of
the donation while sending only pennies to the actual
charity.
Give only to those charities you know
to be reputable. If you receive a charitable solicitation
by mail, make sure it includes specific details on exactly
how the money will be used and what percent of donations
actually go to the charity. You can also go to
www.charitywatch.org, which rates more than 500 charities,
to help you make an informed giving decision.
Checklist for giving:
-
Reputable charities don’t send
unsolicited e-mails via SPAM.
-
A reputable charity has a street
address and a phone number.
-
Reputable charities don’t use PayPal
and always provide an e-mail address that is part of
their website. For example: donations@name of
charity.com.
-
Beware of scam artists who don’t want
your contribution, but want your personal and
confidential information such as your name, address and
credit card number.
-
If the telemarketer pressures you to
give immediately, be suspicious. A legitimate charity
will give you all the information you request and all
the time you need to make sure it is legitimate.
-
Don’t give cash. A legitimate charity
will take a check.
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Some charities hire professional
fundraisers rather than use their own staff or volunteers.
These people are in business to make money and are
entitled to keep a portion of the proceeds they collect.
If you are approached by a professional fundraiser, you
may want to ask what percentage of the donation they will
keep. If you’re uncomfortable with that amount, you may
wish to give directly to the charity and bypass the
professional fundraiser.
Know the difference between “tax
exempt” and “tax deductible”. “Tax exempt” means the
organization doesn’t have to pay taxes. “Tax deductible”
means you can deduct your contribution on your federal
income tax. If a tax deduction is important to you, ask
for a receipt so you can file it with your year-end tax
return.
The Federal Trade Commission has
announced a new rule governing telemarketing calls that
feature prerecorded messages. Beginning September 1, 2009,
telemarketing companies must obtain the call recipient’s
written permission before contacting them with a
prerecorded message. In the more immediate future,
effective December 1, 2008, prerecorded telemarketing
calls must have an opt-out mechanism so that a recipient
can elect not to receive these unsolicited calls in the
future.
With these new regulations, charitable
organizations can continue contacting their members or
previous donors, but will need to offer an opt-out
mechanism once the new rule goes into effect.
If you believe an organization may not
be operating for charitable purposes or making misleading
solicitations, contact your state Attorney General, local
consumer protection office or Federal Trade Commission.
Continue to give. There are great
needs. Just give wisely.
CONSUMER TIPS is provided as a public
service by the Missouri Independent Bankers Association
AND
Community Bank of the Ozarks
P.O. Box 43
Sunrise Beach, MO 65079
(573) 374-5245
1-800-927-4314
www.cbobanker.com
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